§1.1 Field of the Invention
The present invention concerns advertising. In particular, the present invention concerns expanding the opportunities for advertisers to target their ads.
§1.2 Related Art
Advertising using traditional media, such as television, radio, newspapers and magazines, is well known. Unfortunately, even when armed with demographic studies and entirely reasonable assumptions about the typical audience of various media outlets, advertisers recognize that much of their ad budget is simply wasted. Moreover, it is very difficult to identify and eliminate such waste.
Recently, advertising over more interactive media has become popular. For example, as the number of people using the Internet has exploded, advertisers have come to appreciate media and services offered over the Internet as a potentially powerful way to advertise.
Advertisers have developed several strategies in an attempt to maximize the value of such advertising. In one strategy, advertisers use popular presences or means for providing interactive media or services (referred to as “Websites” in the specification without loss of generality) as conduits to reach a large audience. Using this first approach, an advertiser may place ads on the home page of the New York Times Website, or the USA Today Website, for example. In another strategy, an advertiser may attempt to target its ads to more narrow niche audiences, thereby increasing the likelihood of a positive response by the audience. For example, an agency promoting tourism in the Costa Rican rainforest might place ads on the ecotourism-travel subdirectory of the Yahoo Website.
Regardless of the strategy, Website-based ads (also referred to as “Web ads”) are typically presented to their advertising audience in the form of “banner ads” (i.e., a rectangular box that may include graphic components). When a member of the advertising audience (referred to as a “viewer” or “user” in the Specification without loss of generality) selects one of these banner ads by clicking on it, embedded hypertext links typically direct the viewer to the advertiser's Website. This process, wherein the viewer selects an ad, is commonly referred to as a “click-through” (“Click-through” is intended to cover any user selection.).
Advertisers may judge the efficacy of an advertising campaign using a number of measurable or determinable user behaviors, such as click-throughs, click-through rates, conversions, conversion rates, etc. The ratio of the number of click-throughs to the number of impressions of the ad (i.e., the number of times an ad is displayed) is commonly referred to as the “click-through rate” of the ad.
A “conversion” is said to occur when a user consummates a transaction related to a previously served ad. What constitutes a conversion may vary from case to case and can be determined in a variety of ways. For example, it may be the case that a conversion occurs when a user clicks on an ad, is referred to the advertiser's web page, and consummates a purchase there before leaving that web page. Alternatively, a conversion may be defined as a user being shown an ad, and making a purchase on the advertiser's web page within a predetermined time (e.g., seven days). In yet another alternative, a conversion may be defined by an advertiser to be any measurable/observable user action such as, for example, downloading a white paper, navigating to at least a given depth of a Website, viewing at least a certain number of Web pages, spending at least a predetermined amount of time on a Website or Web page, etc. Often, if user actions don't indicate a consummated purchase, they may indicate a sales lead, although user actions constituting a conversion are not limited to this. Indeed, many other definitions of what constitutes a conversion are possible. The ratio of the number of conversions to the number of impressions of the ad (i.e., the number of times an ad is displayed) is commonly referred to as the conversion rate. If a conversion is defined to be able to occur within a predetermined time since the serving of an ad, one possible definition of the conversion rate might only consider ads that have been served more than the predetermined time in the past.
Despite the initial promise of Website-based advertisement, there remain several problems with existing approaches. Although advertisers are able to reach a large audience, they are frequently dissatisfied with the return on their advertisement investment.
Similarly, the hosts of Websites on which the ads are presented (referred to as “Website hosts” or “ad consumers”) have the challenge of maximizing ad revenue without impairing their users' experience. Some Website hosts have chosen to place advertising revenues over the interests of users. One such Website is “Overture.com”, which hosts a so-called “search engine” service returning advertisements masquerading as “search results” in response to user queries. The Overture.com Website permits advertisers to pay to position an ad for their Website (or a target Website) higher up on the list of purported search results. If such schemes where the advertiser only pays if a user clicks on the ad (i.e., cost-per-click) are implemented, the advertiser lacks incentive to target their ads effectively, since a poorly targeted ad will not be clicked and therefore will not require payment. Consequently, high cost-per-click ads show up near or at the top, but do not necessarily translate into real revenue for the ad publisher because viewers don't click on them. Furthermore, ads that viewers would click on are further down the list, or not on the list at all, and so relevancy of ads is compromised.
Search engines, such as Google for example, have enabled advertisers to target their ads so that they will be rendered in conjunction with a search results page generated from a query. Although search result pages afford advertisers a great opportunity to target their ads to a more receptive audience, search result pages are merely a fraction of page views of the World Wide Web (referred to as “the Web”).
Existing client-side advertising software systems (such as that used by the Gator Corporation of Redwood City, Calif.) can show ads within a user's browser or on the user's desktop in response to a Web page being viewed without awareness or participation by the content owner. Such systems may require a presence on the client (end user's) computer and generally require the end user's permission. In the Gator system, ads may be targeted to users using (i) demographic and lifestyle profiles, (ii) behavioral targeting (which allows targeted, customize messages to be displayed on users' computer screens based on their individual online behavior), (iii) historical targeting (which allows targeted, customized ads to be displayed on users' computer screens based on past behavior), and (iv) tag-a-long targeting (which allows targeted, customized ads to be displayed on users' computer screens whose online behavior has indicated an interest, but also delivers multiple impressions as they travel around the Web). Unfortunately, although past user behavior is often a useful metric for determining what ad(s) to serve to a user, such past behavior might not be indicative of a current user interest. Further, past user behavior for a given user may be difficult to track if more than one person (such as different members of a family) use the same computer and browser to access the Internet. Furthermore, tracking the online habits of a user raises delicate issues of that user's privacy. Moreover, if such past user behavior is stored locally on the user's computer, it may consume needed storage resources.
Thus, there is a need to utilize advertising opportunities on the Web more fully. Doing so should help the ad server show more ads and enhance the experience of end users by serving relevant ads.